In California, already challenged by record state deficits, the city of Los Angeles may have a budget shortfall of $1 billion by 2013, "driven primarily by escalating employee pension costs and stagnant tax revenues". For the current fiscal year the city faces a deficit of $98 million. Under such budget conditions, the city's administrative officer projects substantial cuts to city services will be "unavoidable".

With states already facing their own set of budget challenges, the League of Cities is calling on the federal government to intercede. According to the League, "in the absence of additional federal intervention, a deepening local fiscal crisis could hobble the nation’s incipient recovery with more layoffs, furloughs, cancelled infrastructure projects, and reduced services." However, with an exploding federal debt load and federal budget deficits running at all time highs, municipal cries for increased aid may face a lukewarm reception in Washington, DC. Support for expanded stimulus efforts might prove lacking, with signs beginning to emerge that a mild economic recovery is underway, and many of the already passed stimulus dollars yet to be spent.

For now, cities facing deficits will have to find ways to solve the shortfall on their own. If they are unable to bridge the gap, municipalities may find themselves forced, like the city of Vallejo, California,to file for Chapter 9 bankruptcy protection.

I was very pleased to find this site. I wanted to thank you for this unique read. I definitely savoured all bits and pieces of it including all the comments and I have added you to my bookmark list to check out new articles you post.book review help

$56 to $83 billion dollar shortfall is just insane . All these stimilus packages have got to stop. The debts are just getting bigger and bigger to the point where the usa will have to be sold off to repay the loans. thanks , Maria. my free credit report

Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. If possible, would you mind updating your blog with more information? It is extremely helpful and beneficial to your readers. lawsuit loans